Sack expats first, then locals: Saudi govt to cos

PTIJan 26, 2009, 01.54am IST

DUBAI: In a move that may affect hundreds of expatriates, including Indians, Saudi Arabia has asked all companies in the kingdom to fire foreigners first, if they have to layoff staff. "Labour offices are instructing companies to start with foreigners first, if they have to sack staff," the 'Saudi Gazette' quoted Muhammad Al-Hamdan, head of the labour office in the eastern province, as saying.

In fact, Al-Hamdan said that labour office inspectors, working for the ministry of labour, have started investigating companies believed to have sacked Saudi staff, because of the global financial meltdown. "Businesses are not permitted to fire Saudi staff and must retain them by transferring them to other jobs made available within a firm by firing expatriate staff," he said.

According to the government figures, the unemployment rate among Saudis is 5.4%. However, the government data shows it is closer to 11% and private economists say the figure could be much higher. In the eastern province, the labour office has visited major companies like SABIC or Saudi Arabian Basic Industries Corporation, whose profits plunged 95% last year as a result of the global slowdown, to ascertain jobs of Saudis are not affected.

The labour office has a history of protecting the jobs of Saudis in the private sector in troubled times. Al-Hamdan said that labour office had intervened a few years ago during a financial crisis that affected contracting companies, by getting Saudis transferred to different posts in the same companies instead of letting management fire them.